A criminal complaint was filed today in federal court in Brooklyn accusing Aurelien Michel, a French citizen residing in the United Arab Emirates (UAE), of defrauding purchasers of “Mutant Ape Planet” NFTs, a type of digital asset, of more than $2. 9 million. in cryptocurrency. The defendant was arrested last night at John F. Kennedy International Airport. His initial appearance is scheduled for this afternoon before US Magistrate Judge James R. Cho.
As part of the scheme, NFTs were marketed to buyers, who were falsely promised numerous rewards and benefits designed to increase the demand and value of their newly acquired NFTs. After selling NFTs, buyers were “pulled” – a cryptocurrency scam in which a developer attracts investors but leaves before the project is completed, leaving buyers with a worthless asset – as none of the promised benefits were provided. . Instead, millions in cryptocurrency from NFT buyers were siphoned off for Michel’s personal benefit.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent in Charge, Homeland Security Investigations (HSI), New York and Thomas Fattorusso, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York York (IRS-CI), announced the charges.
“As alleged, the defendant used a traditional criminal scheme to defraud consumers eager to participate in a new market for digital assets,” said the US attorney for peace. “The protection against fraud and manipulation extends to all consumers and investors, including those participating in the rapidly evolving market for NFTs and other crypto assets. Our office is committed to bringing to justice any criminal who abuses any market for his own gain.”
“As alleged, Aurelien Michel perpetrated a ‘carpet-pulling’ scheme – stealing nearly $3 million from investors for his personal use. Buyers of Mutant Ape Planet NFTs thought they were investing in a trendy new collectible item, but they were misled and received none of the promised benefits,” said Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations (HSI) in Nova York. “HSI uses our extensive experience in investigating financial crimes in conjunction with our cutting-edge cyber capabilities to uncover fraud and bring perpetrators to justice.”
“It is alleged that Michel defrauded investors by making false representations of, among other things, giveaways, tokens with betting features and merchandise collections. Once the NFTs were depleted, Michel allegedly stopped communications and withdrew buyers’ funds from the company’s cryptocurrency wallets, filling his pockets with nearly $3 million in investor money,” IRS-CI Fattorusso said. “Michel can no longer blame the NFT community for his criminal behavior. His arrest means he will now face the consequences of his own actions.”
As alleged in the criminal complaint, the Mutant Ape Planet NFTs were a digital asset stored on the Ethereum blockchain. As an NFT, each Mutant Ape Planet NFT was unique, freely transferable, and gave buyers exclusive ownership of each NFT. NFTs were marketed with promises of exclusive benefits that potential buyers would receive. These benefits included exclusive opportunities for additional investments, freebies, merchandise and other rewards. However, after sending their cryptocurrency and obtaining the NFT, the buyers received nothing while their cryptocurrency was diverted from the Mutant Ape Planet NFT project to cryptocurrency wallets controlled by the defendant Aurelien Michel. In total, over $2.9 million worth of cryptocurrency from buyers was embezzled as part of Michel’s scheme.
As alleged, in a social media chat with current and potential buyers, Michel admitted to the fraudulent “rug pulling” but blamed the NFT buying community for his actions, stating: “We never intended to carpet, but the community was very toxic.”
The charges in the complaint are allegations only, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant US Attorneys Drew Rolle and Dylan Stern of the Office’s Securities and Business Fraud Section, with assistance from paralegal expert William Daniels.
If you believe you have been a victim of this crime, call the HSI whistleblower line at 1-866-347-2423.
The defendant:
AURELIEN MICHEL
Age: 24
Dubai, United Arab Emirates
EDNY Docket No. 23-MJ-7
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